Archives September 2022

Renting is an appealing lifestyle for many Americans today. As opposed to owning a home, renting provides the comfort that home life has to offer without the weight of a mortgage payment or long-term commitment to the property.

Renting a property comes with the important task of acquiring renter’s insurance. Most renters are required to obtain insurance by their leasing office or landlord but are not educated about what the policy actually covers. The following is everything you need to know about renter’s insurance.

What is Renter’s Insurance?

Renter’s insurance is essentially the renter’s equivalent of homeowner’s insurance. Your policy protects your property from harm, caused by theft, fire, water damage, and more. It also protects you, the renter, from potential liability claims.

Liability claims may arise in the event that someone is injured on your property and chooses to take legal action against you. Your policy will cover the costs of necessary legal defense if you are sued by an injured person or the landlord, as well as medical bills if someone is hospitalized due to an injury on your property.

Renter’s insurance applies if someone is injured due to structural failure or otherwise. Additionally, if the property you are renting is damaged and you are required to move out while repairs are made, your policy will cover the costs of alternate housing.

What Events Does Renter’s Insurance Cover?

The renter’s policy will cover the cost of your belongings in the case of theft, or if they are damaged due to an “event.” Most policies cover damages caused by 15 specific events: lightning/fire, hail, smoke, vandalism, explosion, volcanic eruption, falling objects, ice/snow, riots, accidental water damage from within the home, sudden tearing of the home structure, freezing occurring within the home, sudden damage from electric currents, damage caused by aircrafts, and damage caused by vehicles.

Your property will be covered even if you are outside the home at the time of the event. Additionally, renter’s insurance covers a portion of your belongings even if it they are with you, and not inside the structure. For example, if you are out shopping and your smartphone is stolen, your renter’s insurance will cover a fraction of the cost of your phone replacement.

What Events Does Renter’s Insurance Not Cover?

Outside of the 15 main events (+ theft), your renter’s insurance policy will not cover much else. Depending on where you live, there may be some variation in your policy.

In general, however, the following are not covered by renter’s insurance: the structure itself, which is covered by your landlord, flooding, earthquakes, infestations of termites or mice, or a roommate’s personal property.

These events are often insured through separate individual policies. If you live in a region prone to flooding or earthquakes, it is best to reach out to your insurance agent to discuss potential coverage options. If you are unsure of what your policy does or does not cover, contact your insurance company for guidance.

How Much Coverage Should You Get?

Your renter’s insurance coverage is directly related to the combined worth of your belongings. When applying for renter’s insurance, it is wise to compile a list of your belongings and their estimated worth. This is especially important for any high-value items you may have on the property. Without doing this, it is easy to under-value the worth of your belongings, and they may not be fully covered in the event of a disaster.

Additionally, submitting a comprehensive list of your belongings will protect you if a claim needs to be filed in the future. By doing this, you will prove the value of your possessions and be much more likely to be reimbursed if they are stolen or destroyed.

Looking for Coverage?

Are you a current renter or looking to rent in the near future? We would love to discuss renter’s insurance with you. At GWK Insurance, our agents are prepared to walk you through the renter’s insurance process and/or help you file a claim, if necessary. Contact us today to discuss your policy options and get a free quote.

Opening a small business is no easy feat and includes many important details to explore and establish. Owners must investigate and acquire necessary licenses, permits, rent or lease information, important tax documents, and more. Additionally, owners should confirm that their business is insured in the necessary areas.

Insurance options for small business owners depend on the type of product that a business offers. Certain companies will need to have a particular type of coverage depending on products or services they offer.

Ultimately, small business insurance works to protect a company from any financial harm that may arise, as well as safeguarding the company in the event that accidents occur.

Types of Business Insurance for Small Businesses

In general, there are a few types of insurance that all small businesses need, typically included in a business owner’s policy.

General Liability Insurance

If you are a small business owner, general liability protects you and your small business from any liability claims that may arise. These claims can occur if a customer is injured while on company property. Injuries may happen due to direct interaction with your product, such as a tool or sharp knife, or simply by slipping and falling.

This type of insurance will also cover property damage claims, which can be filed if a customer’s belongings are lost or damaged while on the property.

Finally, general liability will protect you in the case of a personal liability claim. These claims are filed in the event of personal defamation. Without this insurance, you would be forced to pay all costs of these claims out of pocket.

Business Income Insurance

Business income insurance, or business interruption insurance, will replace your lost income in the event of a natural disaster, property damage, or theft. This type of coverage is beneficial if a store closure is necessary to repair the property.

If the store must close down for months at a time to complete repairs, large amounts of revenue may be lost. Business income will assist in replacing the revenue that you would have earned during this time.

Additionally, business income insurance will protect you in cases of theft. This can be in regard to stolen product, or funds stolen directly from the business. Your insurance policy will cover the lost revenue while you work to replenish the missing product or funds.

Commercial Property Insurance

Commercial property covers the property, building, technology, furniture, tools, records, and any fixtures of your small business, whether owned or rented. This coverage is vitally important, as it protects your business and its assets from damages caused by fire, wind, and lightning, as well as theft or vandalism.

Without this coverage, any damage to the building, its fixtures, and virtually anything inside the physical building will not be protected. Any costs to repair or replace these losses would be paid directly out of your pocket as owner.

Every small business owner with a physical location should have this type of insurance to ensure that all assets are protected.

Additional Coverage

Depending on the nature of your small business, other types of coverage should be considered. While not included in a business owner’s policy, other policies may be necessary to protect you and your product from potential harm.

A few other policies to consider include:

• Workers’ Compensation Insurance
• Commercial Auto Insurance
• Professional Liability Insurance
• Commercial Umbrella Insurance
• Cyber Liability Insurance

When determining additional coverage, it is important to consider the reach of your business, as well as potential growth.

Looking for Coverage?

Are you a small business owner seeking guidance or coverage for your business? At GWK Insurance, our agents are experienced with business insurance and are ready to help. If you need guidance throughout this process, we would love to offer our services. Contact us today to schedule a consultation or to receive a quote.

Maintaining a homeowner’s insurance policy is a vital step for anyone looking to purchase a home. Shopping out different policy options, along with reading the fine print, is a necessary part of the process. This ensures that you, the homeowner, understand the ins and outs of what incidents your policy will cover, and instances that will not be covered by insurance.

Types of Damages Not Typically Covered

While every homeowner’s policy is unique, there are certain key issues that most policies will not cover. Understanding these instances before purchasing your home will benefit you, so that you are prepared if disaster strikes.

The following are different types of damages that will not be covered by basic insurance policies.

Issues Caused by Lack of Maintenance

Taking care of your home through necessary maintenance is a vital part of being a homeowner. Failing to properly maintain your home can cause serious damages to the dwelling, which are not covered by your homeowner’s policy. The insurer will cite any issue caused by neglect, or failure to maintain routine maintenance procedures, as something within the homeowner’s control.

In these cases, the insurer will most likely not cover the resulting damages. These damages often include leaky pipes that were possibly neglected that have caused rotting wood and underlying water damage to the structure. Typical wear and tear of appliances, or neglect of furniture are also excluded.

If the insurer determines that these damages could be prevented by proper homeowner maintenance and care, they will most likely not cover the cost to repair the damages.

Floods and Earthquakes

The majority of homeowner’s insurance policies cover common natural disasters such as wind, hail, lightning, and wildfires. However, most policies do not cover damages caused by flooding or earthquakes.

Flood and earthquake coverage is typically found in a separate policy entirely, and homeowners living in regions prone to these disasters should seek out this coverage if necessary.

Basic homeowner’s insurance policies, however, do not offer coverage for these events since most homes are not prone to these types of disasters. If you feel that your home is at risk of being damaged by a flood or earthquake, contact your insurer regarding separate policies for these more extraordinary events.

Mold

In most cases, mold damage is caused by a long-term leak, or failure to properly maintain the home. If your insurance company determines that the mold damage occurred due to neglect, a leak that was not repaired, or a naturally occurring flood, they will not cover the cost of repairs.

However, if the investigation determines that the mold was caused by a leak that quickly built up or was deep in the walls and unable to be noticed, they may cover the cost of damages. In any situation, it is best to notify your insurance company immediately so they can begin an investigation as soon as possible.

Intentional Damage

Your homeowner’s insurance policy will not cover any damages caused by yourself or a family member. This includes a wide range of issues, such as structural damages, damages to appliances or other belongings, theft, or graffiti.

Your insurer will cover accidental damages or injuries, as laid out in the personal liability section of your policy. However, if any damage was intended, pre-determined, or used to cause harm, the insurer will not cover the cost of repairs.

Questions About Your Policy?

Are you a first-time homeowner or in need of a new homeowner’s insurance policy? We are here to help! At GWK Insurance, our team of experienced agents is prepared to guide you through the insurance selection process.

We understand the ins and outs of a policy can be daunting, especially for a new homeowner, and we are ready to assist you. Contact us today so that we can answer any questions you may have regarding your homeowner’s policy.